[Click eStock] "EasyBio, Ample Room for Revaluation as a Global Company"

NH Investment & Securities analyzed on the 19th that EasyBio has ample potential to be re-evaluated as a global company.

Since its establishment in 2020 through the spin-off of Easy Holdings, EasyBio has maintained a dominant No. 1 position in the domestic piglet feed and feed additive market, leading the Korean animal resources industry.

Despite concerns about population decline, demand in the domestic pork market continues to steadily increase due to changes in dietary habits. Accordingly, the pig farming and piglet feed markets are also experiencing balanced growth.

Shim Eui-seop, a researcher at NH Investment & Securities, stated in the report, “EasyBio accelerated its global market entry by acquiring the US feed and additive company Devenish Nutrition last February. This acquisition more than doubled its sales scale and strengthened competitiveness in terms of global supply chains and sales/distribution networks, which is expected to create growth synergies.”

Researcher Shim added, “Especially, EasyBio’s overseas sales ratio, which was only in the low teens last year, is expected to exceed 60% in 2024. This will act as a factor that further enhances the potential for both organic and inorganic growth in the global market.”

He also explained, “Due to the effect of acquiring Devenish Nutrition, EasyBio’s PER (price-to-earnings ratio) is expected to decrease from 8.0 times in 2023 to 7.1 times in 2024, and to around 4.6 times in 2025. This is evaluated as an attractive valuation compared to peers in the same industry.”

Additionally, EasyBio acquired treasury shares for cancellation purposes worth 4 billion KRW until last November, and recently resolved a capital reserve reduction dividend, which is expected to provide a tax-free dividend yield of approximately 3.05%.

He concluded, “With the combination of valuation, shareholder return policy, and global market growth potential, EasyBio is highly likely to establish itself as a global company in the future.”